OpenAI Sets Startup Record with ₹13.5 Crore Average Employee Compensation

OpenAI has reportedly set a new benchmark for employee compensation among global startups, underscoring the intensifying battle for elite artificial intelligence talent. According to a report by The Wall Street Journal, the AI research firm now offers the highest average employee compensation ever recorded for a startup, reflecting how fiercely companies are competing to attract and retain top researchers and engineers.

Record-Breaking Pay Packages at OpenAI

(OpenAI Employee Compensation Details)

As per the report, OpenAI’s approximately 4,000 employees receive, on average, company stock worth $1.5 million (around ₹13.5 crore) each as part of their 2025 pay package. This unusually high level of compensation highlights the premium being placed on AI expertise as generative AI, large language models, and advanced machine learning systems reshape the global technology landscape.

The figures demonstrate how compensation structures in the AI sector are increasingly dominated by equity-based rewards, rather than traditional salary components alone.

Compensation Far Exceeds Big Tech Averages

(Comparison with Other Technology Companies)

The report cited data compiled by Equilar, revealing that OpenAI’s average employee compensation is 34 times higher than what employees earn at other major technology companies. This sharp contrast reflects OpenAI’s aggressive strategy to retain its top talent, especially at a time when rival firms are actively poaching AI researchers with lucrative offers.

How OpenAI Compares with Google’s Early Years

(Historical Comparison)

For perspective, OpenAI’s compensation levels far exceed what Google offered at a similar stage in its corporate journey. It is reported that OpenAI’s stock-based pay in 2025 is more than seven times higher than what Google provided in 2003, just a year before Google’s initial public offering. This comparison highlights how dramatically the value of top technical talent—particularly in AI—has risen over the past two decades.

The Rising Cost of Competing for AI Talent

(Financial Pressures on AI Companies)

While such generous compensation packages help companies secure the best minds in the industry, they also raise concerns about financial sustainability. Heavy spending on employee compensation means companies may incur losses from their core business operations, especially during expansion phases. Additionally, extensive stock-based payouts can lead to ownership dilution, reducing the overall equity stake of existing shareholders.

Not Just OpenAI: Meta and Others Follow Suit

(Industry-Wide Talent War)

OpenAI is not alone in this high-stakes talent race. Meta has also recruited several AI researchers and senior executives with compensation packages running into hundreds of millions of dollars, reflecting a broader trend across Silicon Valley and global tech hubs.

Investor documents further reveal that OpenAI is expected to pay stock-based compensation of up to $3 billion per year through 2030, indicating that the company views talent acquisition as a long-term strategic priority rather than a short-term expense.

Changes in OpenAI’s Equity Compensation Policy

(Easier Access to Stock-Based Rewards)

Previously, OpenAI required employees to remain with the company for at least six months before becoming eligible for stock or equity grants. This policy has now been relaxed, making it easier and faster for employees to receive stock-based compensation. The move is widely seen as an effort to stay competitive in an environment where top AI professionals have multiple high-paying options.

Conclusion

OpenAI’s average compensation of $1.5 million (₹13.5 crore) per employee highlights the extraordinary cost of securing world-class AI talent in today’s technology landscape. With compensation levels far exceeding those of traditional tech giants and even early-stage Google, OpenAI’s approach reflects the strategic importance of human capital in the AI arms race.

While such spending strengthens OpenAI’s ability to innovate and lead in artificial intelligence, it also underscores the financial pressures facing AI companies as they balance talent retention, operational sustainability, and long-term shareholder value in an increasingly competitive market.